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Obstacles to growth for high technology SMEs in Finland

Karkkonen, Kristina (2020)

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Obstacles to growth for high technology SMEs in Finland (1.838Mb)
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Pro gradu -tutkielma

Karkkonen, Kristina
2020

School of Business and Management, Kauppatieteet

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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2020040610494

Tiivistelmä

This paper is an attempt to identify main obstacles to growth experienced by high-tech SMEs in Finland. There is a considerable amount of research dedicated to the growth, however, the field is very fragmented. Literature review revealed that each theoretical perspective has its own unique take on the subject. Surprisingly enough, many of the assumptions intercept due to the fact that they adapt quite identical theoretical models and treat them as their own. Since there is no dominant theory to describe SME growth within this work theoretical lenses are applied as they fit.

Primary data for a qualitative analysis was gathered from five semi-structured interviews, two of which were conducted with market experts and three with representatives of small and medium-sized high-tech ventures from Finland. Results of data analysis with CAQDAS NVivo supported an assumption that factors affecting SME growth can in fact be classified into four groups: management strategies; characteristics of the entrepreneur; environmental/industry specific factors; and the characteristics of the firm. Though according to findings perceived importance of some classes outwaited the others.

Empirical findings suggest that the most onerous growth barriers for high-tech SMEs from Finland are related to human resource management and financial inadequacy. In association with entrepreneurial characteristics, lack of managerial and industry experience of top management were found oppressive. Strategically it seems that companies are in need to find equilibrium and avoid concentrating only on one particular strategy. Peculiarly, environmental factors did not get substantial support neither by experts nor the high-tech SMEs and several interdependencies among other factors were revealed. The shortcomings of theoretical approaches in explaining both phenomena have led to exploration of contingency model that in turn revealed major opportunities for further development within the field.
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